SAIC Motor has said its 2007 net profit more than tripled from a year earlier on strong sales and substantial contributions from assets injected by its parent.
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The company said its net profit for the year ended December was CNY4.63bn, up from CNY1.36bn in 2006.
Revenue was up five-fold to CNY104.38bn from CNY19.56bn.
SAIC Motor’s parent, Shanghai Automotive Industry Corp., injected CNY21.40bn worth of auto-related assets into the listed unit in late 2006, including its stakes in joint ventures with General Motors Corp. and Volkswagen AG
SAIC Motor said its vehicle sales grew 25.8% to 1.69m units last year, with sales of passenger vehicles up 24.3% at 1.14m. Sales of commercial vehicles rose 29% to 553,000 units.
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By GlobalDataEarnings per share stood at CNY0.708 up from CNY0.355 a year earlier.
The company said it has set a sales target of 1.9 m units for 2008, with total revenue seen growing to CNY119.1bn.
It forecasts that China’s total domestic auto demand will grow 10% to 9.7m units this year.
However, the company also cautioned that overcapacity in the industry meant price competition would remain fierce.
It also said it planned a CNY15.31bn investment on major expansion projects, with some CNY7.35bn earmarked for the production of own-brand cars.
